Pinnamaneni Prasad became the CEO of Nava Bharat Ventures Limited (NSE:NBVENTURES) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Nava Bharat Ventures
How Does Pinnamaneni Prasad’s Compensation Compare With Similar Sized Companies?
According to our data, Nava Bharat Ventures Limited has a market capitalization of ₹17b, and pays its CEO total annual compensation worth ₹70m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹8.4m. We looked at a group of companies with market capitalizations from ₹7.1b to ₹28b, and the median CEO compensation was ₹16m.
As you can see, Pinnamaneni Prasad is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Nava Bharat Ventures Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Nava Bharat Ventures has changed over time.
Is Nava Bharat Ventures Limited Growing?
Nava Bharat Ventures Limited has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). It achieved revenue growth of 75% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Nava Bharat Ventures Limited Been A Good Investment?
I think that the total shareholder return of 36%, over three years, would leave most Nava Bharat Ventures Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
We examined the amount Nava Bharat Ventures Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Nava Bharat Ventures insiders are buying or selling shares.